In a household where adult children still live with their parents or adult roommates share the home to cut down on costs, it is important to remember that your car belongs to you. Many people get comfortable with the notion that they can drive any person’s car in the household. Indeed, it might start off with a quick trip to pick up some groceries for a roomy or picking up a family member at the airport. But if driving becomes more frequent in the other person’s car, it is time to call your auto insurance agent to make sure the names of all drivers appear on the car insurance.
A friend can borrow your vehicle if you give them permission to do so. But it is important to know that insurance claims can get a bit tricky if your teen, for example, let a friend drive the vehicle and had an accident. Should an accident occur, your insurance will kick in first; only when damages exceed your policy will the other driver’s coverage kick in.
Most insurance companies understand borrowing a car for a day or one-time occasions; otherwise, you could be in the gray area where an insurer might not cover a claim that the unlisted driver caused. You do not want to be accused of misrepresentation by an auto insurance company. It is better to name all the drivers that could be driving the vehicle, even if it is only 50 percent or less of the time. Misrepresentation, therefore, could cost you even more than adding another driver to your vehicle insurance policy.
An auto insurance company will review the other drivers’ driving record, other insured vehicle, and frequency of driving your vehicle. Auto insurance premiums can often be cut down when everyone in a family is with the same insurer. This is also a good time to review deductibles based on how secure you feel with the other drivers using your vehicle. If they are relatively safe drivers and conscientious about taking care of your automobile, then you might look at increasing the deductible. This can save you money on the premium, but you want to make sure that it does not wipe out your savings should something happen to the vehicle.